Toronto, Ontario--(Newsfile Corp. - August 13, 2024) - Canuc Resources Corporation (TSXV: CDA) (OTCQB: CNUCF) ("Canuc" or the "Company") is pleased to announce completion of a previously reported repair and workover operation. The successful workover operation was undertaken on the natural gas producing Coody-Morales Trac 3-3 well held by the Company's 100% owned subsidiary MidTex Oil and Gas Corporation ("MidTex"). Founded in 2011 in the Province of Ontario Canada, MidTex holds ownership and lease rights for (8) producing natural gas wells in Stephens County, West Texas and also holds rights for further in field developments.
The Big Saline Formation is a natural gas bearing zone which is located at approximately 3,700-feet true vertical depth ("TVD") in the Company's operating natural gas wells. The Company's Coody-Morales Trac 3-3 well has been producing from the Big Saline for more than 13 years. The well was drilled in 2011, with a drilling and completion cost of $153K USD, and to date has produced a gross revenue of $1.05M USD ($1.45M CAD). The well has exhibited low decline rates and in 2023 produced 35,246 MCF of natural gas at an average sale price of $3.27 USD ($4.48 CAD) per MCF.
In early 2024 the Coody-Morales Trac 3-3 well evidenced a decline in natural gas production from the Big Saline Formation. The Company's West Texas based operator concluded that tubing wear and calcification had contributed to the decline in natural gas production, and that a well repair and workover program might return the well to long term natural gas production averages. A successful workover has now been completed and the well has returned to production averaging ~100 MCF/day of natural gas for the months of June and July 2024.
Logs for the Company's Coody-Morales Trac 3-3 well indicate that above the Big Saline Formation there are two additional hydrocarbon zones which are prospective for production. The Caddo Limestone is a potential oil-bearing zone located at approximately 3,200' TVD and the Strawn Sands is a potential gas-bearing zone located at approximately 1,700' TVD.
The Company expects to move up hole to complete and test both the Caddo Limestone (oil) and the Strawn Sands (natural gas) respectively at some point in the future, after economic depletion of the Big Saline Formation.
"The Big Saline Formation in the Coody-Morales Trac 3-3 well has been producing cash flow for the company since 2011 and has paid out several times over the drilling and completion costs of the well. The workover has now successfully increased natural gas production for the well. We expect to continue producing the Big Saline Formation until it is depleted. Above this zone, and behind pipe, are two further zones which are prospective for hydrocarbon production, the Caddo Limestone (oil-bearing zone) and the Strawn Sands (natural gas-bearing zone). The company has interests in a total of 8 producing wells in Stephens County, West Texas and also holds rights for further in field developments," stated Christopher Berlet, President & CEO of Canuc.
"In developing the company's cash flow from our MidTex energy project in West Texas, we seek to protect shareholders from unnecessary dilution and to benefit from advancement of competitive USA based energy assets."
This press release has been reviewed and approved by Chris Cheng, P. Eng, director and QP for the Company.
About Canuc
Canuc is a junior resource company focusing on its San Javier Silver-Gold Project in Sonora State, Mexico. The Company also generates cash flow from natural gas production at its MidTex Energy Project in Central West Texas, USA where Canuc has an interest in eight (8) producing natural gas wells and has rights for further in field developments.
For further information please contact:
Canuc Resources Corporation.
(416) 525 - 6869
cberlet@canucresources.ca
Forward-Looking Information
This news release contains forward-looking information. All information, other than information of historical fact, constitute "forward-looking statements" and includes any information that addresses activities, events or developments that the Corporation believes, expects or anticipates will or may occur in the future including the Corporation's strategy, plans or future financial or operating performance.
When used in this news release, the words "estimate", "project", "anticipate", "expect", "intend", "believe", "hope", "may" and similar expressions, as well as "will", "shall" and other indications of future tense, are intended to identify forward-looking information. The forward-looking information is based on current expectations and applies only as of the date on which they were made. The factors that could cause actual results to differ materially from those indicated in such forward-looking information include, but are not limited to, the ability of the Corporation to fund the exploration expenditures required under the Agreement. Other factors such as uncertainties regarding government regulations could also affect the results. Other risks may be set out in the Corporation's annual financial statements, MD&A and other publicly filed documents.
The Corporation cautions that there can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, investors should not place undue reliance on forward-looking information. Except as required by law, the Corporation does not assume any obligation to release publicly any revisions to forward-looking information contained in this press release to reflect events or circumstances after the date hereof.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/219663
SOURCE: Canuc Resources Corporation
